ShareChat, an Indian social media startup backed by Twitter, Google, Tiger Global and Temasek, laid off 20% of its workforce, or more than 400 people, just one month after cutting more than 100 roles. .
The startup notified employees of the decision on Monday morning. It has disabled access to accounts and wiped all data for affected employees, a person familiar with the development told TechCrunch.
In December, ShareChat laid off nearly 5% of its 2,300 employees as a result of shutting down fantasy sports platform Jeet11.
Informing employees of the new decision, ShareChat CEO Ankush Sachdeva said in an internal memo that the move was to “ensure the financial health and longevity” of the startup. Executives also said the startup had “overestimated the market’s growth at 2021 highs and underestimated the duration and intensity of the global liquidity squeeze.” First reported by the Economic Times.
In a statement emailed to TechCrunch, a ShareChat spokesperson confirmed the layoffs, saying, “After much deliberation and growing market consensus that investment sentiment has remained very cautious throughout the year. “In the light of this decision,” he said.
“Since launching eight years ago, ShareChat and short-form video app Moj have experienced tremendous growth. There were some external macro factors.
“With these factors in mind, we must prepare the company to weather these headwinds. , had to let go of about 20% of the highly talented employees who were with us on this startup journey.”
The spokesperson also claimed that the startup “aggressively optimized costs across the board, including marketing and infrastructure, and stepped up its monetization efforts.”
Exact details of the affected roles were not disclosed.
Affected employees will receive their total salary during the notice period, plus two weeks of compensation for each year they worked at the startup. The employee will also receive her 100% of her variable pay until December 2022, and her health insurance cover will remain until the end of June, the startup confirmed.
The startup will also allow affected employees’ ESOPs to vest according to schedule through April 30.
“We are doubling down on the efforts behind our advertising and live streaming revenue. ‘, said the spokesperson.
According to Crunchbase, ShareChat has raised over $1 billion in more than 15 funding rounds, including its final $300 million Series H funding last May.
